[vc_row_inner equal_height="yes" content_placement="middle" gap="10"][vc_column_inner width="2/3"]Emiliano Escobedo has dedicated his professional career to the promotion and development of the avocado market. It's a world that motivated him from a very young age. After graduating from university, he began his career at a public relations agency in New York, focused on food promotion, where he became familiar with the avocado industry when he served the Mexican Avocado Producers Association (APEAM) as a client.[/vc_column_inner][vc_column_inner width="1/3"] “The Mexican avocado industry was just beginning to export volumes. I worked with several clients, including the Fresh Fruits from Chile campaign, promoting various products such as mangoes, mushrooms, berries, and, of course, Mexico’s first avocado campaigns. My interest in the avocado industry grew, and then an opportunity arose to work directly with APEAM,” he recalls.

After several years in the market intelligence department, he was promoted to marketing director, leading promotional campaigns in the United States, Europe, Japan, and Canada. In 2011, he was recruited to lead the Hass Avocado Board (HAB), beginning in January 2012.

“I have been in this position for more than 12 years, promoting the Hass avocado,” he tells Avobook.

Currently, he is the CEO of HAB, where he has successfully led the promotion and expansion of avocado consumption in the northern country.

– How does the HAB operate to activate the promotion of avocados in the United States?

“The Hass Avocado Board (HAB) was established in 2002, following the passage of a federal law by the U.S. Congress and the President. This law created the Hass Avocado Promotion, Research, and Information Program in the United States. The primary objective is to strengthen the domestic industry and increase avocado consumption in the United States, funded by a mandatory fee of five and a half cents per kilogram of avocados sold. Fifteen percent of the funds raised are allocated to general product promotion, while the remaining 85% allows for differentiation among the various exporting countries, such as Chile, California, Peru, Colombia, and Mexico. Each country has its own association, and the Hass Avocado Board focuses on general promotion and research that benefits all.”

– What has the Hass Avocado Board proposed to increase avocado consumption in the United States?

“We have five strategic priorities: nutrition, market research, sustainability, public relations, and communications. We invest approximately 15% of our annual net income in nutrition research, developing and advancing the discovery of the health benefits of avocados for humans. We have also created a Hass Avocado Sustainability Center to lead sustainability research and information in the avocado industry. In communications, we invest more than a third of our annual budget, promoting avocado nutrition and sustainability, as well as conducting campaigns targeting the industry.”

– Are there numbers that validate the results of all that management?

“We recently commissioned an independent evaluation of the program’s success, conducted by economists at the University of California, Davis. They determined that U.S. demand for avocados has grown without a corresponding decrease in price. Adjusted for inflation, the price received by producers and importers has been positive, even though the supply of the product has tripled in the last 20 years. The benefit-to-cost ratio is 2.5: for every dollar invested in promotion, we receive $2.50 in profit. This analysis covers the years 2018 to 2022 and was presented in March of this year.”

– What are American consumers asking for in avocados that could increase their consumption?

“We conduct an annual survey representative of American consumers, and the primary reason for purchasing avocados in the United States is their health benefits. People eat them because they are healthy. But they also eat them for another reason: because they like them. We have seen significant growth in avocado consumption in the United States, but only two-thirds of households consume them regularly. There are still one-third of households that do not consume them. Among the households that do consume them, just one-quarter account for 85% of total consumption. There are opportunities for growth in this market by educating consumers about the health benefits and the various ways to enjoy avocados.”

– By what percentage has consumption grown in the United States over the last 10 years?

“We focused on increasing avocado consumption and also on achieving better prices, and we have succeeded: Comparing 2013 with 2023, consumption has increased by 68%. Not only has per capita consumption grown, but also the market value. The value of avocados has increased, and people are willing to spend more. In dollar terms, the increase has been 72% in the last 10 years, demonstrating that not only is more being consumed, but the value of the product has also risen.”

– The most basic rules of economics state that greater supply leads to lower prices. In a way, it regulates itself according to that logic. And if there's one thing that's been happening in the United States for a long time, it's that the amount of fruit entering the country has been steadily increasing, and from what I understand, this hasn't had an impact on the price. Is this a peculiarity of the product?

“The price has risen due to strong demand generated by our promotional programs. The supply and demand equation indicates that when supply increases, prices should fall, unless demand increases at the same rate or exceeds it. We have managed to keep demand above supply, maintaining or increasing prices. Over the past 20 years, supply has tripled, but demand has outpaced that increase, keeping prices stable or rising.”

– But will this be finite? Is there any projection that it will stop?

“The volume of avocados entering or produced in the United States is subject to a mandatory quota per kilogram. It is crucial to continually evaluate investment in promotion and research in proportion to the volume traded. If the percentage of resources allocated to promotion decreases, the return on investment may not be sufficient to generate the necessary demand. However, according to researchers at UC Davis, the U.S. market still has considerable room for growth. One-third of households do not yet consume avocados, and of those that do, 25% spend less than $6 per year, while the largest 25% spend close to $100 per year. There are many opportunities for growth both regionally and annually, taking advantage of the appropriate season for each producing country.”

– When you analyze the avocado market in the United States, Mexico is the dominant supplier. However, other players have entered the market, such as Peru, Colombia, and others, which are producers that used to export to Europe, but are now much closer to the United States. How do you see the outlook for these countries that compete with Mexico?

“The U.S. market is sophisticated and familiar with products from diverse origins, such as Peru, Chile, California, and Mexico. Each country has its optimal quality window, and it's crucial to manage that quality effectively and seek markets during those windows. Mexico is a strong competitor, but there are opportunities for other countries in different parts of the market, provided that quality is maintained and the windows of opportunity are capitalized on.”

– After California, which states consume the most?

"Excluding California, Texas and the Southeast (Florida, Carolina) have shown significant growth in avocado consumption, reaching levels similar to the national average."

– What is the most important lesson learned from the HAB experience?

The numbers speak for themselves, demonstrating that it is essential for all producers worldwide to invest in promotion. Contributing a small fee per kilogram is crucial for the industry to continue growing, not only in the United States but also in other markets. Everyone must participate to ensure the business is sustainable and beneficial for all stakeholders in the avocado production and distribution chain.